[E5 Trading] Relative Volume

Jan 22, 2023Relative Volume Overview[\b]

• The E5 Trading Relative Volume indicator enhances volume analysis in several ways:
  
• First, volume has been normalized to a percentage value, enabling standard thresholds for strong, average, and weak volume.
  
• Second, each candle's volume is evaluated against its history to identify statistically significant bull and bear volume bars that may indicate whale (or institutional) buying and selling.
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  Relative Volume Thresholds[\b]
  
  • Volume has been normalized to a percentage value based on a user-defined period. Default (50).
    
  • This enables using standard thresholds across all assets to determine strong, average, and weak volume.
    
  • Price moves with strong relative volume are more meaningful to technical analysis than equivalent price moves with weak relative volume.
    
  • Use as confluence with price breakouts...trends can often be identified early when price breakouts are supported by strong relative volume.
    
  • Similarly, price breakouts supported by weak relative volume will likely reverse.
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    Volume Power Bars[\b]
    
    • Identify whale buying and selling with Volume Power Bars and follow the smart money!
      
    • Bull | Bear Volume Power Bars show statistically significant Bull and Bear Volume Bars that may indicate whale (or institutional) buying and selling. Default (On).
      
    • Trends often follow the direction of Volume Power Bars.
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